B+L Defends Unilateral Pricing Policy (UPP) and Launches New Consumer Campaign/J&J Drops UPP

"Bausch + Lomb has distributed a letter to eye care providers concerning the company's Unilateral Pricing Policy (UPP)," notes Eyewire. Here's the letter: "April 20, 2016 Dear Eye Care Practitioner, Bausch + Lomb has been, and will continue to be, a driving force in advocating for your patients, and for the safe wear and care of contact lenses. We stand committed to providing our unwavering support for you and your practice and for the development of new technology." Read more.

This comes a day after the company launched its new consumer advertising/marketing campaign. "Bausch + Lomb has launched a 360-degree national consumer advertisement campaign, including television, digital, social media and in-office material challenging contact lens-wearers with the question, “Are your contacts still comfortable?” to demonstrate how many digital screen-reliant contact lens wearers can often find their contact lenses uncomfortable. The campaign, starring the “Man of Comfort”, follows a patient throughout her busy day, inquiring at key moments" if he is comfortable. Read more.

Meanwhile "Johnson & Johnson (ticker: JNJ ) had announced that it will discontinue UPP (unilateral pricing policy, which sets a minimum floor price for retail sale) across its contact lenses. While it’s unclear whether competitors will follow suit, feedback from our consultants suggests that Johnson & Johnson’s action is unlikely to materially affect pricing or market share in the contact-lens market," notes Barron's. "It remains to be seen if there will be disruptions associated with Johnson & Johnson’s UPP move that could hurt the company’s performance or help its competitors in the near term. At Vision Expo, we also confirmed that Johnson & Johnson will launch its new contact lens in July, which will be its new silicone hydrogel (SiHy) monthly. We continue to see this launch as potentially disruptive to Cooper’s ( COO ) growth acceleration effort in the second half of fiscal 2016." Read more.

In Utah, Attorneys Getting Ready to Throw Down about State's Anti-UPP Law

The Salt Lake Tribune recently reported that "an appeals court has given Utah state attorneys more time to respond in a lawsuit over a hotly contested law banning minimum prices for contact lenses that could have wide-ranging effects on the $4 billion industry." Read more.

1-800 Contacts Wins! Federal Appeals Court Will Allow Ban on UPP of Contact Lenses

"A federal appeals court ruling has cleared the way for discount contact lens retailers to drop prices while a legal battle is waged between the state of Utah and manufacturers who want to impose minimum prices on their products," reports U.S. News & World Report. "The decision handed down from the 10th Circuit Court of Appeals in Denver on Friday comes after three of the nation's largest contact lens manufacturers sued to halt a hotly contested law. Supporters, including Utah-based discount seller 1-800 Contacts, say the newly enacted legislation bans price fixing for contact lenses. But opponents, including Alcon Laboratories, Johnson & Johnson and Bausch & Lomb, say it's a brazen overreach that allows discount sellers to violate interstate commerce regulations and skirt industry price standards. Utah's attorney general has said the companies are wrongly driving up prices, and the law is a legitimate antitrust measure designed to enhance competition and help customers. Attorney General Sean Reyes' office didn't have a comment on the decision Friday." Read more.

Utah's Ban on Minimum Priced Contact Lenses Withstands Suit

"A federal judge is refusing to block a Utah law banning minimum prices for contact lens that has drawn the ire of the nation's largest manufacturers," according to an Associated Press story on Fox Business. "In a decision handed down Monday in Salt Lake City, U.S. District Judge Dee Benson said contact-lens makers like Johnson & Johnson and Bausch & Lomb haven't shown that the law is unconstitutional. The manufacturers sued the state last month amid an increasingly bitter fight with discount retailers like 1-800-Contacts. They said the law was written at the behest of the Utah-based discounter and minimum prices help eye doctors make recommendations." Read more.